Galaxy Securities: Covered Jinshan Software (03888) for the first time and gave it a “recommended” rating

The Zhitong Finance App learned that Galaxy Securities released a research report saying that Jinshan Software (03888), as the leading domestic office software, has broad prospects for AI empowerment, actively seeks change in the gaming business, and is giving it a “recommended” rating for the first time. The bank estimates that the annual revenue of Jinshan Software from 2025 to 27 will be RMB 10.568 billion, RMB 11.608 billion and RMB 13.4 billion (same below), with growth rates of 2.43%, 9.83% and 15.44% respectively, with earnings per share of RMB 1, RMB 1.11 and RMB 1.31, respectively.

According to the report, WPS AI significantly increased user activity and payment conversion. B-side WPS 365 revenue increased 71.61% year-on-year in the third quarter of 2025. AI enabled the formation of a flywheel for data and product integration. With the acceleration of the subscription system, government AI products have already been implemented in central and local party and government agencies.

Furthermore, the report indicates that the company uses the “Swordsman Affair” IP as the core, and that the mobile game “Sword Net 3” maintained its vitality through continuous operation, and that there was a significant return of users after the launch of its all-platform interoperability version “Sword Net 3: Unbounded”. The company actively expands new categories such as science and two-dimensional games, and promotes overseas games to break through dependence on traditional martial arts categories. However, the performance of the new game market is fragmented, and short-term performance is under pressure. Revenue from online games and other businesses fell 47% year on year in the third quarter, mainly due to the decline in revenue from existing games such as “Unblock”, and newly launched games are still in the early stages of building their influence in the market.